(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T01017R000706980001-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 7
• Document Creation Date: January 12, 2017
• Document Release Date: March 22, 2011
• Sequence Number: 1
• Publication Date: December 22, 1986
• Content Type: MEMO

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Central Intelligence Agency
DATE DOC NO 697
O I R -3
P & PD 1
DIRECTORATE OF INTELLIGENCE
22 December 1986
China-US: Tungsten Products Trade--An Update
Summary
Chinese exports of tungsten products to the United States continue
to grow, albeit slowly, despite promises to tighten control. In response to
US complaints, Beijing may point to the drop in exports by the China Na-
tional Metals and Minerals Import and Export Corporation, but we believe
that China is aware of--and has condoned--increased shipments by seven
other firms.
This memorandum was prepared by I I Office of East Asian Analysis. Informa-
tion available as of 22 December 1986 was used in its preparation. Comments and
queries are welcome and may be directed to the Chief, Economic Assessments Branch,
China Division, OEA,
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Tungsten Product Exports and Exporters Increase
Chinese exports of tungsten products--par-
ticularly ammonium paratungstate (APT) and tungstic acid--continue to grow.' Exports
of APT through November were nearly 2 percent above the level for full-year 1985, and
tungstic acid shipments were up about 8.5 percent (see table 1). At the same time,
shipments of iron ammonium paratungstate, down in 1985, were curtailed altogether. F
The composition of the shippers has changed significantly in the last six months.
The China National Chemicals Import-Export Corporation retains clear control over ship-
ments of tungstic acid--100 percent of shipments through November 1986, compared
with 60 percent in 1985 (see table 2)--but several organizations have entered or reen-
tered the APT market (see table 3). The China National Metals and Minerals Import and
Export Corporation (MINMETALS) shipped nearly 80 percent of China's APT exports to the
United States in the first half of 1986. Between July and November that share dropped
to about half. Seven firms with no shipments in the first half of 1986 have entered the
market since June. Of these, six exported APT to the United States in 1985; only one
did not.
We believe Beijing is aware of and has at least indirectly condoned the shipments
by the seven firms. Most are centrally administered corporations, and the China Re-
sources Transportation and Godown Company, accountable for 22 percent of shipments
since June, is a shipping agent for MINMETALS, so at least part of its exports were
probably under MINMETALS control. Moreover, all APT exports require a license issued
by MINMETALS. As a result, we believe that it is well within Beijing's power to control
their activity.
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Table 1 Metric Tons
Chinese Shipments of Selected Tungsten Compounds to the United States, 1984-86
1984 1985 1986
Full Year Full Year Jan-Nov
Ammonium
Paratungstate
Iron Ammonium
Paratungstate
Tungstic Acid 95.58 125.19 135.84
Source: Port Import-Export Retrieval System (PIERS), Journal of Commerce.
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Table 2 Percent (%) of Tonnage
Chinese Shippers: Share of Tungstic Acid Exports to the United States, 1985-86
1985 1986
JAN - DEC JAN - NOV
China National Chemicals Import
and Export Corporation 60.3 100.0
SOURCE: Port Import-Export Retrieval System (PIERS), Journal of Commerce.
* Category contains shippers who have requested confidentiality from US
Customs.
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Table 3 Percent (%) of Tonnage*
Chinese Shippers: Share of Ammonium Paratungstate Exports to the United States, 1985-86
1985
JAN - DEC JAN - JUN JUL - NOV JAN - NOV
Unknown Shipper** 20.6 13.5 0 7.9
China National Metals and Minerals Import and 20.5 79.5 49.4 67.1
Export Corporation (MINMETALS)
China Resources Transportation and Godown 18.5 0 21.9 9.0
Company, Ltd., Hong Kong
Fujian Metallurgical 10.3 0 0 0
China Travel Service 5.8 0 4.3 1.8
Dong Fang Trading 5.3 0 0 0
China National Nonferrous Metals Industry Corp. 4.8 0 4.0 1.7
TBI 4.7 0 0 0
China National Metallurgical Products Import and 3.7 0 4.0 1.7
Export Corporation
Pearl River Container 1.8 0 0 0
China National Light Industrial Products Import 1.6 0 0 0
and Export Corporation
China International Trust and Investment Corp. 1.6 0 7.7 3.2
South China Consolidation 1.0 0 0 0
China Merchants 1.0 0 4.3 1.8
Freight Transport International 0 7.0 0 4.1
China National Machinery and Equipment 0 0 4.3 1.8
* Percentages will not total because of conversion and rounding.
** Category consists of shippers who have requested confidentiality from
US Customs.
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DISTRIBUTION:
1 - William B. Abnett, Director of China Affairs, USTR
1 - Joan Plaisted, Deputy Director for Economic Affairs, Office for Chinese
Affairs, Rm 4318, Department of State
1 - Office of Intelligence Liaison, Department of Commerce, for:
Jeff Lee, Director, Office of PRC and HK
1 - Office of Intelligence Liaison, Department of Commerce, for:
Fred Siesseger, International Trade Administration
1 - Bruce Hendrickson, US Department of Transportation, Maritime
Administration, Office of International Activities, 400 7th St, SW,
Washington, DC 20590
Central Intelligence Agency
2 - C/OEA/CH, Room 4G32
1 - C/OEA/CH/PA, Room 4G32
1 - C/OEA/CH/EA, Room 4G32
1 - C/OEA/CH/IS, Room 4G32
1 - C/OEA/CH/TT, ROOM 4G32
1 - OEA/Production Officer, Room 4G48
1 - D/OEA, Room 4F18
1 - DDI, Room 7E44
1 - DCI/DDCI/Executive Staff, Room 7060
1 - Senior Review Panel
1 - PDB Staff, Room 7F30
1 - NIO/EA, Room 7E62
1 - NIO/Econ, Room 7E62
1 - C/PES, Room 7F24
1 - C/OEA/NEA, Room 4G43
1 - C/OEA/SEA, Room 4F38
1 - FBIS/NEAAD/China Branch, Room 306 Key
1 - FBIS/AG/China Branch, Room 212 Key
1 - LDA/AN/China, Room 1H18
1 - C/EA/~ Room 5038
5 - CPAS/IMC/CB, Room 7G07
5 - Author
5 - Chrono
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1 - C/DO/PPS, Room 3D01
1 - C/EA0 Room 5D10
1 - CPAS/ILS, Room 7G50
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